Five ways to lower your costs for cheaper auto insurance coverage
As you shop for cheap auto insurance coverage, you might think a policy from some top insurance companies is out of your price range. But there’s a lot you can do to lower the price without giving up the coverage you need. Here are five ways to help you get cheap auto coverage.
1. Ask about discounts
Find out if the company offers discounts if you insure more than one car, use anti-theft devices or maintain an accident-free driving record. Discounts like these can add up to real savings.
2. Adjust the policy
If the quoted rate is just a bit out of your price range, you may lower it by making a few changes. For example, if you drive an old car with high mileage, you might consider eliminating collision or comprehensive coverage if you need to keep your insurance costs low. A rule of thumb: If your insurance premium is greater than 10% of your vehicle’s actual value, you might consider dropping these two coverages in favor of lower premiums. But it's important to understand that if you don't have these coverages and something happened to your car, you would have to pay for any repairs.
3. Decrease the limits
If your vehicle is older or has very high mileage, consider decreasing the limits to achieve cheaper auto insurance coverage. This may lower your premium − but it can be a risky move. If the damages from an at-fault accident exceed your limits, you may have to pay the balance out of your pocket.
4. Raise the deductible
You can raise your deductible to get cheap auto insurance coverage. Moving from a $250 to $500 deductible may reduce your insurance costs by 20% or more. But remember that you’ll be responsible for paying this higher deductible if you have a claim.
5. Combine policies
You can often obtain cheap auto coverage by combining your auto insurance policy with your homeowners insurance or life insurance. At Nationwide, when you insure more than one vehicle, you may save up to 20%.